Greek stocks continued to slide on Tuesday as the benchmark edged mighty close to the psychological threshold of 1,000 points, registering a new 12-month low.
The Athens Exchange (ATHEX) general index ended at 1,012.05 points, shedding 2.26 percent from Mondays closing of 1,035.43 points. The large-cap FTSE/ATHEX 25 index contracted 1.29 percent, ending at 337.37 points.
The demotion of the local bourse from developed to emerging market status by Standard & Poors had an instant impact on Greek stocks on Tuesday, resulting in the benchmarks biggest drop in 26 sessions on a day when most international markets headed south. Turnover however rose to its highest level in the last five sessions.
Greek equities posted gains for a third consecutive day on Wednesday, in line with stocks elsewhere in Europe which were helped by a Morgan Stanley report forecasting benefits for firms from the projected slide in the euro. The market was also bolstered by news of a near end to the Greek recession and the disbursement of a 1-billion-euro bailout tranche.
The slump continued for the majority of stocks on the Greek bourse on Wednesday as banks kept dragging on the market, as has been the case over the last few weeks. The increased turnover suggests that sellers mean business and will likely persist until foreign portfolios are convinced that bank stock prices are low enough to buy back in again.
Favorable reports on the local credit sector published on Tuesday by Morgan Stanley and Goldman Sachs propelled local stocks to a healthy rebound at the start of the years second half.
The Athens Exchange (ATHEX) general index closed at 1,228.85 points, adding 1.20 percent to Mondays 1,214.31 points. The blue chip FTSE/ATHEX 25 expanded 1.14 percent to close at 396.52 points.